An Assessment of the Impact of Oil Theft on Sustainable Economic Development in Nigeria

Abstract: This paper examines the impact of oil theft on sustainable economic development in Nigeria against the backdrop of the country’s dependence on petroleum as a source of the government’s revenue. The paper also assesses Nigeria’s oil resource economy and its contribution to national development. The article posits that although there is a large deposit of petroleum in Nigeria and oil resource is the country’s primary source of income, its exploitation has not engendered the desired sustainable development due to oil theft. Entrapped in the vicissitudes of oil theft exacerbated by the establishment of illegal refineries and oil bunkering, it has been difficult for the nation to generate the needed revenue to initiate development. Therefore, to what extent has oil theft affected revenue generation in Nigeria? What has been responsible for oil theft? This paper explores and interrogates these, and other variegated issues arising from the oil theft analysis and suggests the way forward. The research method in the paper is qualitative, employing descriptive and analytical tools to conclude. Essentially, the report argues and demonstrates that Nigeria’s development is far from sustainable despite the availability of oil deposits and their exploitation.

Key words: oil bunkering, oil resource economy, oil theft and sustainable development

JEL codes: O43, O14, O11